GBP/USD is trading around 1.3255, rebounding after finding strong support around the 4/8 Murray level. During the European session, the British pound showed a positive bias; however, it now faces strong resistance around 1.3260. This level could keep the British pound under downward pressure, and we could expect it to return toward the support levels at 1.3220.
Should GBP/USD undergo a technical correction, this could be seen as an opportunity to open long positions, with a target at 1.3260; furthermore, if a break above this resistance occurs, we could expect the British pound to reach Murray's 5/8 level around 1.3305 and ultimately reach the 200 EMA around 1.3357.
Given that the British pound is oversold and the Eagle indicator is showing a positive signal, any pullback could be considered a buy signal, but we must keep in mind that as long as the price consolidates above the 4/8 Murray line, it will be viewed as a bullish signal.
The British pound could continue its rise in the coming days, but it would need to consolidate above 1.3260 and break through the 5/8 Murray level above 1.3305; it could then reach the March 22 high around 1.3470.
The Eagle indicator is showing a positive signal, so any pullback will be considered a buy signal. A move below 1.3183, where the 4/8 Murray line is located, could validate our outlook.
